China Morning Snapshot – 08 March 2019
China Morning Snapshot – 08 March 2019
LL C4 Film PPH Inj PPH Raf
Dalian Commodity Exchange extended the weaker trend throughout the morning session and drag the spot sentiment lower.
Details on the spot and futures prices are shown in the following table:
|
08 March 2019 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
|
|
Dalian Commodity Exchange (Mid-day closing) |
|
||||
|
PP 1905 |
CNY 8748 |
USD 1122 |
-CNY 101 |
-USD 15 |
|
|
LLDPE 1905 |
CNY 8660 |
USD 1111 |
-CNY 75 |
-USD 11 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
|||
|
PPH (East China) |
CNY 8750-8800 |
USD 1122-1129 |
-CNY 100 |
-USD 15 |
|
|
LLDPE (North China) |
CNY 8700-8850 |
USD 1116-1135 |
-CNY 50 |
-USD 7 |
|
|
**All USD equivalent prices are exclusive of 16% VAT |
|
|
|
||
|
Exchange rate: USD 1 = CNY 6.72 |
|||||
Total inventories at Sinopec and CNPC’s warehouses remain unchanged from yesterday at 920,000 tons as on 08 March 2019.
The domestic spot market is loosing steam and buyers become calmer on the final trade day of the week. Transactions are taking place at the lower end of the overall price range and with the falling futures market; buyers are negotiating fiercely for discounts.
“Local inventories digestion rate remains below expectation and this caused some worrisome. Unless the VAT rate cut materialize soon, buyers are seeing little encouragement to replenish in large quantity,” a trader added.